I dont think its the only type of pad work someone needs, but I think its good for constant repetition of defense and counter punching, so when you need to do it in the fight it happens quickly. Also it can reinforcing good technique, or in some cases, reinforce bad technique. It also is really good for "fight agility", you add in slips, rolls, pulls pivots, even in the short video I posted, I helps to get you very mobile in the ring. Its not essential to a fighters success, but i think it can help for sure.
Are you from Jonny Tocco's gym in Las Vegas? I am from the UK, but I went and trained there for a few weeks, real nice gym, real hot in there haha.